North Carolina Securities Fraud Laws
Created by FindLaw's team of legal writers and editors | Last updated February 02, 2018
Even in difficult economic times, there are always people with money willing to invest in risky ventures for the chance at plentiful returns. These same people are vulnerable to being victims of securities fraud, a crime based on false statements and misrepresentations that affect the securities market; it can occur in many ways. For example, imagine a promoter who convinces people to investor in a venture by promising them generous returns. Instead of putting the money into the investment, the promoter embezzles the money and uses funds to pay off other investors, essentially participating in a Ponzi scheme. Other prohibited activities include misleading filings and insider trading.
If you engage in securities fraud in North Carolina, you can face civil penalties in addition to being criminally charged. Depending on the circumstances, you may be prosecuted under federal law, state law, or both.
North Carolina Securities Fraud Laws at a Glance
The chart below provides a summary of statutes related to North Carolina's securities fraud laws, including links to important code sections.
Statutes |
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Elements of the Crime |
Sales and Purchases: It is illegal for any person in connection with the offer, sale of any security to engage in the following:
Manipulation of the market (illegal to commit the following):
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Penalties |
Possible penalties may include incarceration and/or fines; the actual penalties will depend on the specific circumstances of your case, but will include factors such as your criminal history. |
Related Offenses |
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Note: State laws are always subject to change through the passage of new legislation, rulings in the higher courts (including federal decisions), ballot initiatives, and other means. While we strive to provide the most current information available, please consult an attorney or conduct your own legal research to verify the state law(s) you are researching.
North Carolina Securities Fraud Laws: Related Resources
- North Carolina Criminal Statute of Limitations Laws
- North Carolina Pyramid Scheme Laws
- Proving Securities Fraud
- Fraud and Financial Crimes
Discuss Your Securities Fraud Case with a Criminal Defense Attorney
If you're accused of violating North Carolina's securities fraud laws, then you'll likely want to talk to a skilled criminal defense attorney who can help with a viable defense or negotiations on your behalf. Use Findlaw's directory to find one near you.
Next Steps: Search for a Local Attorney
Contact a qualified attorney.